|

Strategic investment of 15% @REA Kaltim

JV with Daiken Corp, Japan for engineered door manufacturing

Starting wood processing business

First planting of oil palms in Central Kalimantan

Acquired 65% of PT TKPI (wood flooring business)in Central Java

First acquisition of oil palm plantation

Acquired 2 plantations in East Kalimantan with total planted area 17k ha & 2 mills

Groundbreaking of Bio-CNG Plant

2016

Established in 1980, DSN is a growing, green producer of palm oil & wood products for the global market

2

First planting of oil palms in East Kalimantan

1997 2009

First planting of oil palms in West Kalimantan

2013

IPO @ Jakarta Stock Exchange

2017

Mill #7 started commercial operation

New CPO mill @30tph in West Kalimantan & 1 extension line @30tph in East Kalimantan have been commercially running since Q3

Construction of Bio-CNG Plant is in progress

2019

1983 2004 2011 2018

44.8K ha

2@150 tph

70.5K ha

5@330 tph

90.3K ha

7@450 tph

112.5K ha

10@570 tph

4.1K Ha

15.2K ha

1@90 tph

57.6K ha

3@210 tph

90.3K ha

6@390 tph

108.4K ha

9@510 tph

112.5K ha

10@570 tph

Total planted Palm Oil Mill #@capacity (FFB tph)

In April 2020, DSN has signed a 10yrs loan facility of USD 30mn from Stichting andgreen.fund(“&Green”), a globally-focused impact investment fund financing sustainable commodity production

In July 2020, DSNG raised Rp 451bn from Its first bond issuance

Successfully refinanced some channeling loans to plasma of IDR 202bn in Sept 2020

On 17 Sept’20, commissioned 1st Bio-CNG Plant with capacity of 1.2MW Electricity & 280 m3/hr Bio-Methane Gas

In October 2020, Established a JV with Erex Ltd Japan to run a Biomass project & to provide LT committed supply of Palm Kernel Shells for Erex’s Power Plants in Japan

A Strategic investment in Verdant Bioscience to develop high yielding conventional seed & clonal seed/semi-clonal palm oil seed

|

Our estates are clustered across East, West, and Central Kalimantan, with the largest in East Region

3

West Kalimantan

Central Kalimantan

North Kalimantan

East Kalimantan

17.0K ha

2 CPO Mills

1.3K ha

1 PKO Mill

1 Bio CNG 6 CPO Mills

63.2K ha

4.1K ha

1 CPO Mill

12.0Kha

1 CPO Mill

15.1Kha

Commercial estates13

Development estates2

Total Planted

|

Mill 2

Mill 3

DWT

SWA

DAN

Mill 1

Mill 4

Mill 6

Mill 7

Palm Oil Mill

DIN

KPS

West Kalimantan

CentralKalimantan

North Kalimantan

East Kalimantan

Singapore

4

Palm Oil Kernel Mill

Bio-CNG Plant

Our most developed cluster in East Kalimantan is nearly the size of Singapore

|

2016 2017 2018 2019 2020

0

10

20

30

40

50

Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

Plasma Estates

0

50

100

150

200

FFB

(t

'000

)

Monthly FFB Production,

Nucleus Estates

Annual Trend

65

82

106114

2017 2018 2019 2020

2429

3134

2017 2018 2019 2020

404

488

610 637

2017 2018 2019 2020

1,548

1,850

2,2042,041

2017 2018 2019 2020

CPO

Production

5

PK PKO

FFB

Our CPO, PK, and PKO production remained strong despite low FFB production in Q3-2020

total age

8.5 9.5 10.0 10.7 11.7

4.3 5.3 6.7 7.2 8.1

(Nucleus & Plasma)

6.57.28.1 8.1

2.94.66.5 4.18.1

12.216.9

9.8

FY%OER 23.6 23.523.523.6 4.24.14.03.5 40.440.841.641.0

41.1

YTDASP (IDR mn/ton)

FY %KER

FY %PKOER

|

458 455

666 640

2017 2018 2019 2020

578

427

178

478

2017 2018 2019 2020

1,5411,334 1,313

1,650

2017 2018 2019 2020

5,1604,762

5,737

6,699

2017 2018 2019 2020

6

Revenue EBITDA Net Profit After Tax

CPO Sales volume

%Margin

Significantly higher CPO ASP in 2020 contributed to a better financial performance against last year

29.9 28.0 22.9 11.2 9.0 3.124.6 7.1

5

6

7

8

9

10

11

12

13

14

JanFe

bM

arA

pr

May

Jun

Jul

Au

gSe

pO

ctN

ov

De

cJanFe

bM

arA

pr

May

Jun

Jul

Au

gSe

pO

ctN

ov

De

cJanFe

bM

arA

pr

May

Jun

Jul

Au

gSe

pO

ctN

ov

De

cJanFe

bM

arA

pr

May

Jun

Jul

Au

gSe

pO

ctN

ov

De

c

ASP (IDR mn/ton)

KPB MedanMDEX DSN8.1

AVG YTD DSN

CPO price from 2017

-11%

-10% 6.5

+25.7%

7.2

8.1

|

0

5

10

15

20

25

30

35FFB Yield (t/ha)

Young mature Prime mature Old mature

Class II

Class III

Average

Peers

BTMA

KENC

FIRST

ANJT

SIMP

LSIP

GAR

DSNG

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

CPO Yield (t/ha)

Average year

5.1

11.7 14.0

3.9

0

1

2

3

4

Feb

Apr

Jun

Aug

Oct

Dec

Feb

Apr

Jun

Aug

Oct

Dec

Feb

Apr

Jun

Aug

Oct

Dec

Feb

Apr

Jun

Aug

Oct

Dec

Feb

Apr

Jun

Aug

Oct

Dec

FFA

(%)

Monthly FFA Levels

Super CPO

Normal CPO

Our plantation whose profile are largely young and prime mature suggested a continuing yield growth potential

7

%OER

Tons FFB/ha

Tons CPO/ha

15.5

19.8

19.0

17.5

22.8

25.2

23.6

21.1

2017

2018

2019

2020

21.9

21.9

22.0

22.2

23.0

23.6

23.5

23.5

2017

2018

2019

2020

3.4

4.4

4.1

3.9

5.6

6.3

5.7

5.1

2017

2018

2019

2020

|

0.83 0.89 0.96 1.10

1.80 1.74 1.98

2.22

0.89 0.80

0.74

0.71 0.36 0.35 0.24

0.22

2017 2018 2019 2020

Fertilizer Labor Others Miling

DSN always strives for the best performance by conducting efficient operation

8

Cost of Sales (IDR bn) 2017 2018 2019 2020

Fertilizer 265.8 304.6 445.6 440.8

Labor 580.3 605.8 939.2 891.5

Others 285.9 275.1 345.2 287.0

FFB Purchased 714.1 654.6 1,045.6 1,817.4

CPO Purchased 378.5 112.7 23.9

Milling 145.8 155.2 159.6 138.7

Total cash cost 2,370.4 2,108.0 2,959.2 3,575.3

Cost as a % of total

Fertilizer 11.2% 14.4% 15.1% 12.3%

Labor 24.5% 28.7% 31.7% 24.9%

Others 12.1% 13.1% 11.7% 8.0%

FFB Purchased 30.1% 31.1% 35.3% 50.8%

CPO Purchased 16.0% 5.3% 0.8% 0.0%

Milling 6.2% 7.4% 5.4% 3.9%

Unit Cash Costs (UCC) (IDR mn & USD)

IDR/ton CPO - Total 5.18 4.63 4.44 5.58

USD/ton CPO - Total 385 320 320 396

UCC excld CPO Trading (IDR mn & USD)

IDR/ton CPO 4.87 4.52 4.43 5.58

USD/ton CPO 363 312 318 396

UCC excld CPO Trading & 3rd Party FFB (IDR mn & USD) - Nucleus only

IDR/ton CPO 3.87 3.79 3.93 4.24

USD/ton CPO 286 262 283 301

UCC CPO only excld FFB, PK & PKO revenues (IDR mn & USD)

IDR/ton CPO - net 2.44 2.70 3.18 3.44

USD/ton CPO - net 180 186 228 244

UCC for internal FFB production per Mature Hectare (IDR mn & USD)

IDR/Mature Ha 17.44 13.79 20.70 18.95

USD/Mature Ha 1,310 952 1,489 1,344

Avg IDR/USD Rate 13,548 14,481 13,901 14,105

Cost as a % of total

Unit Cash Costs (UCC) (IDR mn & USD)

UCC excl CPO Trading (IDR mn & USD)

UCC excl CPO Trading & 3rd Party FFB (IDR mn & USD)

UCC CPO only excl FFB, PK & PKO revenues (IDR mn & USD)

UCC for internal FFB production per Mature Hectare (IDR mn & USD)

Cost of Sales (IDR bn) 2017 2018 2019 2020

| 9

Involved in empowerment programs(transportation, infrastructure, local project, etc)

Social Empowerment

|

23.9 23.0 23.6 23.5 23.5

2.60 2.96 2.77 2.67 2.76

2016 2017 2018 2019 2020

7.5 8.17.2 6.5

8.1

6.2 6.5

4.62.9

4.1

14.3

16.9

12.2

8.19.8

2016 2017 2018 2019 2020

312

404

488

610637

51 65 82106 114

17 24 29 31 34

2016 2017 2018 2019 2020

17.4

22.825.2

23.621.1

4.35.6 6.3 5.5 5.1

0.7 0.8 1.0 1.0 0.9

2016 2017 2018 2019 2020

1.09

1.55

1.85

2.202.04

0.98

1.381.59

1.861.68

0.12 0.170.26 0.34 0.37

2016 2017 2018 2019 2020

10

FFB Harvested(million tons)

Yield per Ha Nucleus(tons)

Production of Palm Products (‘000 tons)

Sales Volume of Palm Products(‘000 tons)

Avg Selling Price(IDR mn)

Mill Effici. & Effectiveness(%)

Total

Nucleus

Plasma

FFB

CPO

PK

OER

FFA

CPO

PK

PKO

2.63

3.733.27

4.31

5.21

0.07 0.06 0.07 0.09 0.130.25 0.46 0.34 0.26 0.32

2016 2017 2018 2019 2020

CPO

PK

PKO

CPO

PKO

PK

Revenue(IDR bn)

EBITDA(IDR bn)

348.4

458 454.9

666640.4

11 10 16 31 3118 27

28 32 33

2016 2017 2018 2019 2020

762

1541

1334 1313

1650

2016 2017 2018 2019 2020

CPO

PK

PKO

| 11

• No deforestation footprint in our oil palm operations by not developing on :

• High carbon stock (HCS) forests• High conservation value (HCV) forests• Peat lands of any depth

• Continuous yield improvement in nucleus and plasma plantations managed by Company

• Zero burning policy in new planting procedures• Ensure free, prior and informed consent for

indigenous and local communities• Comply with all relevant laws and National

Interpretation of RSPO Principles and Criteria

Enhanced PlantingProcedures

• Zero waste policy by recycling the mill’s wastes

• Precise dosage in fertilizer application planning to minimize risk of pollution

• Integrated pest management by deploying biological controls to minimize and mitigate the impact of chemical pesticides

Sustainable Practices for Existing Plantations

Sustainability Certifications

Bio-Compressed Natural Gas (Bio-CNG) Plant

2 millionLiters of diesel Fuel

per Annum

Saving of

Economic

Since Sept 2020, DSN has started to treat POME by capturing the methane gas released and converting the methane gas into electricity of 1.2 MW and Biomethane Gas of 280 m3/hr,.By utilizing this liquid waste, DSN will gain the following benefits:

805,370Planting

Trees

10,870Cars

off the road

Removing

17,450Tons of

Landfill Waste

Recycling

50,000+Carbon

per Annum

Reducing

Environmental

= = =&

# 190tphSWA

# 260tphDAN

# 360tphDIN

# 460tphSWA

# 660tphDWT

# 560tphPWP

# 760tph

KPS

# 830tphAAN

# 960tphBPN

# 1030tphBAS

Capacity

570#millCapacityLocation

+ 2 ISCC Certificates

84%

58%

tons/hr

Bulking @Labanan

RSPO

In process of RSPO Certification

equivalent

| 12

In SPOTT Annual Report 2020, DSN was ranked 16th out of 100 nominations with a total scoring of 75.3%, significantly increased from last year position

of 46th with a scoring of 37.3%

https://www.spott.org/palm-oil/2020 Ranking : 16th Worldwide

For period :Dec 20 – May 21

Inclusion of DSNG:IJ Stock in the SRI KEHATI Index since 24 November 2020

SRI KEHATI measures the stock price performance of 25 listed companies, selected by KEHATI Foundation, that have good performance in encouraging sustainable businesses, as well as having an awareness of the environment, social, and good Corporate governance or called Sustainable and Responsible Investment (SRI).

SRI-KEHATI is a jointly-developed index between the Indonesian Stock Exchange and the Indonesian Biodiversity Foundation (KEHATI Foundation)

GreenAdvised by

The Contributors

Unilever

Norway’s International

Climate &Forest Initiative

GlobalEnvironment

Facility

|

JapanCanada &

USA

Australia

AsiaEurope

14

Comply with International Environmental Standards

We comply with numerous international environmental standards, and seek to ensure that all logs and sawn timber purchased for our operations are sourced from sustainable

forest resources

Engineered Flooring

Panel

Engineered Door

Operating summary

Financial summary (IDR bn)

Worldwide Market

New Zealand

JV with

Corporation, Japan

FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 QoQ Δ% 2018 2017 2018

Sales Volume ('000)Panel (m3) 86.2 96.6 (10.8) 22.2 16.3 36.4 83.8 71.0 92.2

Engineered floors (m2) 986.6 931.7 5.9 326.1 258.3 26.2 1,093.8 1,249.7 1,254.6

ASP (IDR mn)Panel (m3) 5.8 5.9 (1.8) 5.7 5.5 3.9 6.1 5.2 4.9

Engineered floors (m2) 0.4 0.4 1.0 0.4 0.4 2.6 0.4 0.4 0.4

FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 QoQ Δ% 2018 2017 2018

Revenue 996 1,001 (0.5) 287 216 33.1 990 869 921 Gross Profit 158 173 (9.0) 50 23 115.1 207 103 35

% margin 15.9 17.3 17.3 10.7 20.9 11.8 3.8

Operating Profit 29 64 (54.4) 8 3 (194.2) 100 28 (93)

% margin 2.9 6.4 2.7 1.2 10.1 3.2 (10.1) EBITDA 109 107 1.0 33 17 (101.2) 134 68 (42)

% margin 10.9 10.7 11.6 7.7 13.5 7.8 (4.6)

Profit Before Tax 5 52 (91.3) 16 (21) (177.5) 49 (75) 57

% margin 0.5 5.2 5.7 (9.8) 5.0 (8.6) 6.2

|

Consolidated Financial Summary (IDR bn) Palm Oil Financial Summary (IDR bn)

Wood Financial Summary (IDR bn)

15

Annual financial statements are audited by Siddharta & Widjaja, Registered Public Accountants– a Member Firm of KPMG International

FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 QoQ Δ% 2018 2017 2016

Profit & Loss

Revenue 6,699 5,737 16.8 2,318 1,231 88.3 4,762 5,160 3,879

Gross Profit 1,752 1,461 19.9 768 253 203.8 1,543 1,724 954

% margin 26.1 25.5 33.1 20.5 32.4 33.4 24.6 Operat. Profit 995 757 31.5 465 176 164.7 932 1,179 436

% margin 14.9 13.2 20.1 14.3 19.6 22.8 11.2 Finance cost (480) (509) (126) (104) (274) (265) (264)

FX gain(loss)-loan 181 33 117 (84) (47) 5 9

Net Profit 478 178 168.4 316 (18) 1,881.3 427 578 252

% margin 7.1 3.1 13.6 (1.4) 9.0 11.2 6.5 EBITDA 1,650 1,313 25.7 703 257 173.7 1,334 1,541 762

% margin 24.6 22.9 30.3 20.9 28.0 29.9 19.6

Palm Oil FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 YoY Δ% 2018 2017 2016

Revenue 5,703 4,736 20.4 2,031 1,016 100.0 3,772 4,290 2,957

Gross Profit 1,594 1,287 23.8 718 230 212.7 1,336 1,621 919

% margin 27.9 27.2 35.4 22.6 35.4 37.8 31.1 Operating Profit 1,057 783 35.1 492 188 161.4 943 1,241 630

% margin 18.5 16.5 24.2 18.5 25.0 28.9 21.3 EBITDA 1,633 1,294 26.1 704 255 175.8 1,310 1,563 904

% margin 28.6 27.3 34.7 25.1 34.7 36.4 30.6 Profit Before Tax 783 317 147.2 475 22 2,027.1 666 1,017 440

% margin 13.7 6.7 23.4 2.2 17.7 23.7 14.9

Wood FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 YoY Δ% 2018 2017 2016

Revenue 996 1,001 (0.5) 287 216 33.1 990 869 921

Gross Profit 158 173 (9.0) 50 23 115.1 207 103 35

% margin 15.9 17.3 17.3 10.7 20.9 11.8 3.8 Operating Profit 29 64 (54.4) 8 3 (194.2) 100 28 (93)

% margin 2.9 6.4 2.7 1.2 10.1 3.2 (10.1)EBITDA 109 107 1.0 33 17 (101.2) 134 68 (42)

% margin 10.9 10.7 11.6 7.7 13.5 7.8 (4.6)Profit Before Tax 5 52 (91.3) 16 (21) (177.5) 49 (75) 57

% margin 0.5 5.2 5.7 (9.8) 5.0 (8.6) 6.2

Cashflow Statement

Cash from

operation1,094 587 86.4 1,094 515 112.5 298 1,095 399

Cash from

Investing(642) (740) (13.2) (642) (333) 93.2 (1,385) (709) (1,042)

Cash from

Financing50 (201) (125.0) 50 (117) (142.9) 1,261 (261) 223

Financial Position

Total debt 6,391 6,415 (0.4) 6,391 6,362 0.4 6,514 4,061 4,396

Net debt 5,632 6,144 (8.3) 5,632 5,984 (5.9) 5,920 3,657 3,995

Total Asset 14,151 11,621 21.8 14,151 11,674 21.2 11,739 8,452 8,183

Total Equity 6,231 3,732 67.0 6,231 3,838 62.3 3,659 3,314 2,704

Debt/equity 1.0x 1.7x 1.0x 1.7x 1.8x 1.2x 1.6x

Net debt/equity 0.9x 1.6x 0.9x 1.6x 1.6x 1.1x 1.5x

Net debt/EBITDA 3.4x 4.7x 3.4x 4.2x 4.4x 2.4x 5.2x

| 16

FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 QoQ Δ% 2018 2017 2016

Palm Estates Planted Land ('000 ha) 112.6 112.4 0.1 112.6 112.4 0.1 108.4 90.3 90.3 Nucleus 84.5 84.6 (0.0) 84.5 84.6 (0.0) 84.4 69.4 68.5 Plasma 28.0 27.9 0.5 28.0 27.9 0.5 24.0 20.9 21.8

FFB Production ('000 t) 2,041.1 2,204.3 (7.4) 612.9 406.5 50.8 1,849.5 1,547.7 1,092.9 Nucleus 1,675.9 1,864.9 (10.1) 506.7 335.8 50.9 1,587.7 1,381.8 977.6 Plasma 365.2 339.5 7.6 106.2 70.7 50.1 261.9 165.9 115.3 FFB Yield (t/ha) Nucleus 21.1 23.6 (10.7) 6.4 4.2 51.1 25.2 22.8 17.4 Plasma 15.7 14.8 6.2 4.6 3.0 50.1 16.3 14.0 13.0

Mills Production ('000 t) FFB Processed 2,711.4 2,597.1 4.4 857.1 558.5 53.5 2,070.6 1,754.0 1,306.4 Crude Palm Oil (CPO) 636.9 610.0 4.4 194.5 130.3 49.2 488.4 403.6 312.0 Palm Kernel (PK) 114.3 105.8 8.0 35.8 23.8 50.4 82.1 65.1 51.1 Palm Kernel Oil (PKO) 34.0 31.5 8.2 10.8 6.8 60.3 29.4 24.3 17.3 Yields (%) Palm Oil (OER) 23.5 23.5 0.0 22.7 23.3 (2.8) 23.6 23.0 23.9 Palm Kernel (KER) 4.2 4.1 3.5 4.2 4.3 (2.0) 4.0 3.7 3.9 Free Fatty Acid (FFA) 2.76 2.67 3.4 3.04 2.77 9.8 2.77 2.96 2.60

Sales Volume ('000 t) Crude Palm Oil (CPO) 640.4 666.0 (3.8) 207.0 123.0 68.2 454.9 458.0 348.4 Palm Kernel (PK) 30.9 31.2 (0.8) 8.0 7.1 12.1 16.4 10.1 11.1 Palm Kernel Oil (PKO) 33.0 32.0 3.1 10.0 8.0 25.1 28.0 27.0 17.5

ASP (IDR mn/ton) Crude Palm Oil (CPO) 8.14 6.48 25.7 9.06 7.44 21.9 7.18 8.14 7.54 Palm Kernel (PK) 4.06 2.93 38.6 4.67 3.63 28.6 4.55 6.45 6.22 Palm Kernel Oil (PKO) 9.77 8.10 20.6 11.16 8.66 28.9 12.20 16.86 14.31

FY 2020 FY 2019 YoY Δ% Q4-20 Q3-20 QoQ Δ% 2018 2017 2016

Sales Volume ('000)Panel (m3) 86.2 96.6 (10.8) 22.2 16.3 36.4 83.8 71.0 92.2 Engineered floors (m2) 986.6 931.7 5.9 326.1 258.3 26.2 1,093.8 1,249.7 1,254.6

ASP (IDR mn)Panel (m3) 5.8 5.9 (1.8) 5.7 5.5 3.9 6.1 5.2 4.9 Engineered floors (m2) 0.4 0.4 1.0 0.4 0.4 2.6 0.4 0.4 0.4

DSNG Shareholders (%)

Oetomo family 28.9

Rachmat family 31.0

Salim Lim family 6.3

Subianto family 9.8

Public & Others 24.0

This presentation may contain forward-looking statements that involve risks and uncertainties. Actualfuture performance, outcomes and results may differ materially from those expressed in forward-lookingstatements as a result of a number of risks, uncertainties and assumptions. Although the Company believesthat such forward-looking statements are based on reasonable assumptions, it can give no assurance thatsuch expectations will be met. You are cautioned not to place undue reliance on these forward lookingstatements, which are based on the current view of the management on future events. Unless otherwisestated, the Company is the source for all data contained in this presentation. Such data is provided as atthe date of this presentation and is subject to change without notice. No reliance may be placed for anypurposes whatsoever on the information contained in this presentation, or any other material discussed atthe presentation, or on the completeness, accuracy or fairness thereof. The information in thispresentation has not been independently verified. No representation, warranty, express or implied, ismade as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness ofthe information and opinions in this presentation. None of the Company or any of its agents or advisers, orany of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of themshall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of thispresentation or its contents or otherwise arising in connection with this presentation. This presentationalso contains certain statistical data and analyses which have been prepared by the Company and/or othersources. Numerous assumptions were used in preparing the Statistical Information, which assumptionsmay or may not appear herein. As such, no assurance can be given as to the Statistical Informationaccuracy, appropriateness or completeness in any particular context, nor as to whether the StatisticalInformation and/or the assumptions upon which they are based reflect present market conditions orfuture market performance.

HEAD OFFICESapta Mulia CenterJl. Rawa gelam V Kav. OR/3BKawasan industry pulogadungJakarta 13930 Indonesia

www.dsn.co.id

T. +62(21)461 8135F. +62(21)468 34865E. info@dsngroup.co.id

PT DHARMA SATYA NUSANTARA Tbk